We begin'by referring to what is possible the major macroeconomic problem - both for analysis and for policy - facing the Western economics today; namely, the reasons why the supposedly mild inflations of the two decades following the Second World War, have now turned into the far more intractable "stagflation" besetting theorist and policy-maker alike.
This paper was published in the Foundations of Modern Austrian Economics. Kansas City: Sheed and Ward (1976): 185-211.
O'Driscoll, Gerald P. Jr. and Shenoy, Sudha R., "Inflation, Recession, and Stagflation" (1974). Economic Staff Paper Series. 181.